What's Going On With Nio Stock?

NIO Inc NIO shares are volatile Wednesday after closing Tuesday down 1.73% following Caixin Services PMI data. Nio shares are now down nearly 20% over the last month. Here's what you need to know. 

What To Know: The Caixin/S&P Global services purchasing managers' index (PMI) declined from 54.1 in July to 51.8 last month, marking the lowest reading in eight months, per Reuters. 

China's services activity has been trending lower as demand remains sluggish. Caixin Insight Group economist Wang Zhe noted that there is still "considerable downward pressure" on the economy.

Nio shares have been drifting lower since the company reported second-quarter revenue of $1.21 billion last week, which missed the consensus estimate of $1.35 billion, according to data from Benzinga Pro. Nio also reported a quarterly loss of 45 cents per ADS, which also missed estimates.

Nio said vehicle deliveries in the quarter totaled 23,520, which was down 24% sequentially and down 6% on a year-over-year basis. Following the print, multiple analysts lowered price targets, which added to the downward momentum last week. 

On Friday, Nio posted delivery numbers for August, which seemed to show that vehicle numbers are bouncing back. Deliveries in August jumped 81% year-over-year to 19,329, bringing cumulative deliveries up to 383,908. 

However, competitor Tesla Inc TSLA also reported strong delivery numbers. Following a series of price cuts, Tesla's China deliveries increased 30.92% month-over-month to 84,159, far above any China-based EV maker.

Nio provides production and delivery numbers on a monthly basis and will report September numbers at the beginning of next month. 

See Also: Tesla China Sales Surge In August After Price Cuts: Did EV Maker Outpace Chinese Rivals?

NIO Price Action: Nio shares were down 0.69% at $10.73 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Nio.